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A late happy Chinese new year to all regular and new visiters of chinawhy.net, wish you a happy and prosperous new year ahead. I went back to South China to celebrate the lunar new year with my parents, brother and nephew during the long vocation. Family reunion, delicious South China food, splendid firework on new year’s eve, New year holiday is always too short…

I guess many of you have come across Hongkong-based companies that have address and contact info in mainland China only(mostly in Shenzhen or somewhere else in Guangdong Province), they are Hongkong-base offshore company.

The reason for people in southern China to set up companies in Hongkong mainly are: 1) Hongkong is tax heaven so many companies set up companies in Hongkong to avoid tax; 2) Hongkong have loose company registration regulation compared with mainland China so it is easy for many individual to set up a shell company there. The cost for setting up an offshore company in Hongkong is around RMB10000.

The danger for dealing with an offshore/shell company in Hongkong is that they don’t have a physical presence there in Hongkong, in that case, if any dispute arises from the transaction, you will have nobody/entity to make remedy against in Hongkong, meanwhile you are also not protected in mainland China as you are dealing with a company in Hongkong.

So how can I tell if a hongkong-based company is an offshore company or a real Hongkong company? Here are some clues:

1)call their telephone number in Hongkong to see if anyone answer it(be awared that the phone might be transferred to some place in China by virtual office service provider in Hongkong);

2)visit their address in Hongkong if you can, that is always the best way to tell the shell company, make sure you visit them secretly as virtual office service provider also provide temporary office for those shell company.

3)Mostly they have a company account(which is positive as I mentioned in other company verification articles), but they open account in small foreign bank. State-run banks like Bank of China, Commercial and Industrial Bank of China, China Construction Bank, Agricultural Bank of China are very strict in opening company account. In mainland China, a company account in state-run banks are way safer if you are going to pursue your rights in mainland China.

Chinawhy have verified more than 2000 companies since 2006, our company inspection service covers most part of Mainland China. For detailed information, please call us on 0086 451 8333 0781 or email us at support@chinawhy.net, or simply place your order at here.

there are 2 website ...all so confusing www.ruixi-antimony.comwww.ruixipaper.com

Thank you very much.best rgds, pareena

Barry O'connor on
AUG
12th
, 2012 9:3 AM

For one month ago, i deal with a very legitimate company that sell electronic product, but i feel their marketing want to trick me , she said her company can't send the goods FOB so she told me to search forwarder in china and she said that the company only can deliver the goods in my forwarder address in china only, and she gave me very high price and not negotiable, warranty time count since date of making product not from date of purchase order, and she only deal with PI not sales contract.

Hassan Sohail on
APR
27th
, 2012 4:5 AM

This company is selling me polyester yarn can your verify if this is a true company or a scam company?

Hi Good day, I need this company details to be verified for me please: Their website is http://www.szhasai.com .all details are shown in contact us page.I want to do business with this company .but i am not sure that it is Real company or scam..please verify me thanks alot.

Kumru kimya on
MAR
24th
, 2012 3:10 AM

can we please verify or send a price enquiry for verification of following company.

www.hbycchem.com

dheeraj sharma on
OCT
17th
, 2011 6:45 AM

Please verify this company in shenzhen,china. I want to purchase goods from this company.

Their website is http://www.ezs-fashion.net.cn/aboutus.html if i conclude this business i will have to send alot of money to them and i need to be 101% sure i cant afford to lose money, i want to make money. thankyou

SALMAN on
JUN
15th
, 2010 1:4 AM

MY NAME IS SALMAN

SALMAN on
JUN
15th
, 2010 0:51 AM

ON LINE TRANSFER OF MONEY

Ken Hornbuckle on
NOV
21th
, 2009 10:16 AM

I wanted to see if there is a way to see if this company is fraudulent or in good standing. I can't afford the $250 for you to go there but if you have a cheaper way to then I would be happy to do that? I have a picture of there business license but it's in Chinese, so that doesn't help me.